The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress to maintain stability and public confidence in the nation's financial system by: insuring deposits; examining and supervising financial institutions for safety and soundness and consumer protection; making large and complex financial institutions resolvable; and managing the resolution of failed banks.
The FDIC was established under the Banking Act of 1933 in response to numerous bank failures during the Great Depression. The FDIC began insuring banks on January 1, 1934. Today, the basic insurance coverage amount for deposit accounts is $250,000.
The FDIC does not operate on funds appropriated by Congress. Its income is derived from insurance premiums on deposits held by insured banks and savings associations and from interest on the required investment of the premiums in U.S. Government securities. It also has authority to borrow from the Treasury up to $100 billion for insurance purposes.
Management of the FDIC consists of a five-member Board of Directors. The members include a Chairman, Vice Chairman, Appointive Director, the Comptroller of the Currency, and the Director of the Bureau of Consumer Financial Protection. No more than three members of the Board can be from the same political party.